| Roth IRAs are individual saving schemes | | | | account you choose to withdraw from. The |
| meant for people with taxable income who | | | | order to be followed is: first of all |
| meet certain eligibility criteria. They | | | | you have to withdraw from the |
| are different from the traditional IRA, | | | | non-taxable annual contributions made to |
| in that the contributions made to them | | | | a Roth IRA, followed by Withdrawals from |
| are subject to tax deductions, but the | | | | conversion contributions on a first-in, |
| earnings themselves are tax-free. This | | | | first-out basis, and finally, the |
| means that the Withdrawals are not | | | | Withdrawals can be made from the |
| subject to taxation. Also, you can have | | | | earnings. |
| more than one Roth IRA account, but | | | | Also, there is a penalty for early |
| there is a limit to the amount of | | | | Withdrawals. For example, if for some |
| contributions that you can make in them. | | | | reason you draw money before reaching |
| Your total contributions in all the | | | | fifty-nine and half years of age, you |
| accounts cannot exceed $4,000, or 100% | | | | will be subject to a ten percent penalty |
| of your adjusted gross income, whichever | | | | on the amount of Withdrawal. There are, |
| is less. | | | | however, exceptions to this rule, |
| There are some rules and regulations | | | | including if the Withdrawals have to be |
| involved with the Withdrawals of the | | | | made because the individual has suffered |
| earnings accrued from these savings. | | | | some sort of disability. Also, if a |
| First and foremost, if you have multiple | | | | person is buying or rebuilding his home |
| Roth IRA accounts, you can withdraw | | | | for the first time, he or she is |
| money from any of the accounts. Yet the | | | | exempted from the penalty. There is no |
| Withdrawals themselves have to be made | | | | penalty involved if the Withdrawal |
| in a certain order, regardless of the | | | | results because of the owner's death. |